Trump Backs Pause on Federal Gas Tax to Lower Pump Prices

President Donald Trump urged suspending the federal 18.4-cent-per-gallon gasoline excise tax to reduce costs at the pump as the national average for regular gasoline topped $4.50 per gallon and diesel reached about $5.70. He tied higher prices to supply concerns and geopolitical tensions connected to the conflict involving Iran.

Several bills in Congress outline different pause options. Sen. Josh Hawley introduced S. 4485, which would set the federal gasoline tax to zero for 90 days. Sen. Mark Kelly’s S. 4032 would suspend the tax until Oct. 1, 2026. Rep. Brendan Boyle’s H.R. 8600 would trigger an automatic pause when the national average price of gasoline exceeds $3.99 per gallon.

The federal excise tax on gasoline is 18.4 cents per gallon and 24.4 cents per gallon on diesel. A three-month suspension would remove more than $10 billion in revenue from the Highway Trust Fund, the account that finances road construction, bridge repairs and public transit projects. That reduction in receipts would affect federal and state transportation budgets unless lawmakers identify replacement revenue or cut projects.

Driver savings from a short pause would be limited. Removing the 18.4-cent gasoline tax reduces the cost of a 15-gallon fill-up by about $2.76. Over a 90-day pause, analysts estimate an average driver might save roughly $30 to $40, depending on miles driven and fuel use. State-level tax suspensions in recent years showed mixed outcomes: some retailers lowered pump prices by about the suspended amount, while others passed along only part of the savings.

Implementation would require congressional approval and legislative language on how to handle excise collections and transfers that fund ongoing projects. Short suspensions could be enacted quickly if both chambers and the White House agree. Longer suspensions would extend relief at the pump but increase pressure on transportation funding.

Asked about timing, Trump replied, ‘Yeah, I’m going to reduce… till it’s appropriate.’ Capitol Hill will consider the proposals and the trade-offs between short-term consumer relief and impacts on transportation financing. The federal gas tax has not changed since 1993.